Volume 2 - 2013 Creating Value For All: Strategies for ...indonesiagcn.org/files/1/publication...
Transcript of Volume 2 - 2013 Creating Value For All: Strategies for ...indonesiagcn.org/files/1/publication...
GROWING INCLUSIVE MARKETS:
INDONESIA CASESVolume 2 - 2013
ENGLISH
Creating Value For All: Strategiesfor Doing Business With The Poor
GROWING INCLUSIVE MARKETS:
INDONESIA CASESVolume 2 - 2013
Published by Indonesia Global Compact Network
ISBN 978-602-98222-0-5 978-602-98222-1-2
November, 2013
Design: Matoa design | www.matoa.org
© CopyrightThis document is copyright-protected by Indonesia Global Compact Network. The reproduction and distribution of this document for information purpose and/or are used for any purpose are permitted by prior permission of Indonesia Global Compact Network Secretary. However, neither this document nor any extract from it are allowed to reproduced, stored, translated, or transferred in any form or by any way (electronic, mechanical, photocopied, recorded, or otherwise) for any purpose by written permission of the Indonesia Global Compact Network Secretary.
IGCN Sekretariat d/a Rajawali Foundation, 6th Floor Menara RajawaliJl. DR. Ide Anak Agung Gde Agung Lot# 5.1Kawasan Mega Kuningan - Jakarta 12950Phone. (021) 576 1828 Fax. (021) 576 1829E-mail: [email protected]
Creating Value For All: Strategiesfor Doing Business With The Poor
iv Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013TABLE OF CONTENTS
Table of Contents
FOREWARD
TIM - GIM VOLUME 2
THE UNITED NATIONS GLOBAL COMPACT
THE INDONESIA GLOBAL COMPACT NETWORK
THE MILLENNIUM DEVELOPMENT GOALS
THE NEW YORK DECLARATION BY BUSINESS
GROWING INCLUSIVE MARKETS – CREATING VALUE FOR
ALL
What are “Inclusive Business Models”?
How to Support the Development of Inclusive Business
Models
CASE STUDY SUMMARY
BNI:
Green The Serambi Mekah In Tsunami Aftermath
Indah Kiat Pulp And Paper
Women Empowerment With Community Strapping In
Indah Kiat Pulp & Paper Mill
Nestlé
Partnership for Sustainable Business: The Case of
Nestlé And Dairy Farmers In East Java, Indonesia
Trakindo
PT Trakindo Utama’s Concerns About Promoting
Education In Indonesia
1
3
5
7
9
11
13
13
16
20
21
22
23
vGrowing Inclusive Markets: Indonesia Cases | Volume 2 - 2013TABLE OF CONTENTS
Umang Island
Pulau Umang: Empowering the Locals And Preserving
the Environment
Unilever
From Product Stewardship to Recycling Partnership:
PT Unilever Indonesia, Tbk and the Role of Women in
Managing Waste Bank and Trashion
Villa Hutan Jati
Heal the Earth With Villa Hutan Jati
Wayan Bullfrog
Sustainable Business Inovation To Win the Competition
24
25
26
27
1Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013FOREWORD
In 2010, Indonesia Global Compact Network (IGCN) successfully launched a report on “Growing
Inclusive Markets: Indonesia Cases Volume 1, 2010, Creating Value for All: Strategies for Doing
Business with the Poor”. The report covers the results of the case study on selected Indonesian
businesses who have implemented inclusive business approach in their strategy. The report was
submitted and distributed at the “UN Global Compact Leader Summit 2010” and the “UN Private
Sector Forum on MDG 2011” in New York and also shared at the International Conference on
“Accelerating Progress toward MDGs through Inclusive Business” in Jakarta in 2011.
In collaboration with companies and universities, with the objective to inspire and encourage
Indonesian businesses to adopt the similar strategy according to their respective industry, eight
case studies are completed and published in “Growing Inclusive Markets: Indonesia Cases Volume 2,
2013, Creating Value for All: Strategies for Doing Business with the Poor”.
As in previous publication, the study focuses on what companies can do to involve the poor in their
business supply chain, either as business partners, producers, suppliers, employees or consumers.
This study does not include company’s philanthropic activities such as donation and charity that
are not commercially sustainable although they are important for community development. The
companies were selected from diverse industries: resort, banking, heavy equipment dealer, farming,
manufacturing, daily and consumer goods and social entrepreneur.
We hope these case studies may serve as a useful reference in implementing inclusive business
strategy. We hope it will stimulate policy makers, entrepreneurs, business leaders, civil service
organizations and academic institutions to initiate similar or even bigger actions to achieve MDGs.
Jakrta, 24 December 2013
Y.W.Junardy
President, Indonesia Global Compact Network.
Foreword
1Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013FOREWORD
3Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013ACKNOWLEDGEMENTS
Team - GIM Volume 2
3Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013TEAM - GIM VOLUME 2
Coordinator : Y.W. Junardy
Team Member : Sinta Kaniawati
Advisor : Chrysanti Hasibuan-Sedyono
Reviewer
• Siti Adiprigandari Adiwoso Suprapto
• Wijayanto
• Franky Jamin
Secretariat and Administration Support
• Budi Hartono
• Satrio Anindito
• Karmila Wati
• Hilda Rafika Waty
• Dinar Dara Tri Puspita Purbasari
Case Study Authors
• Lina Salim
• Anita Maharani
• Iin Mayasari
• Iyus Wiadi
• Retno Hendrowati
• Rini Sudarmanti
• Ahmad Khoirul Umam
• Handrix Chrisharyanto
• Prima Naomi
• Dian Rosdiana
• Tia Rahmania
• Andrew S. Mewburn
• Sendy Widjaja
• Maria R. Nindita Radyati
• Veritia Sukarta
• Astan Jaya Tamburaka
• Santi Ermawati
• Liliana Inggrit Wijaya
• Dudi Anandya
• Fitri Novika Wijaya
5Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE UNITED NATIONS GLOBAL COMPACT
The United Nations Global Compact
5Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE UNITED NATIONS GLOBAL COMPACT
Launched at the UN Headquarters in New York on 26 July 2000 by the former Secretary-General Kofi
Anan, United Nations Global Compact (UNGC) seeks to advance responsible corporate citizenship so
that business can be part of the solution to the challenges of globalization. In this way, the private
sector — in partnership with other social actors — can help realizing the aims to achieve sustainable
and inclusive global economy. Today, Global Compact forms the largest corporate responsibility
initiative in the world – with over 8,000 signatories comprised of companies, international labour, civil
society organizations, and academics based in more than 135 countries.
A voluntary corporate citizenship initiative, the Global Compact pursues complementary objectives:
• Making the Global Compact and its principles as part of business strategy and operations;
• Facilitating cooperation among key stakeholders by promoting partnerships in support of UN goals.
The Global Compact is not a regulatory instrument — it does not “police”, enforce or measure
the behavior or actions of companies. Rather, the Global Compact relies on public accountability,
transparency, and the enlightened self-interest of companies, labour and civil society to initiate and
share substantive action in pursuing the base principles of Global Compact.
The Global Compact is a network. Until now, more than 80 countries have established the local
network. Indonesia Global Compact Network (IGCN) is one of the Global Compact Networks. In
carrying out the mission, Country network is expected to involve all the relevant social actors:
• Government, who defined the principles on which the initiative is based;
• Companies, whose actions it seeks to influence;
• Labour, in whose hands the concrete process of global production takes place;
• Civil society organizations, representing the wider community of stakeholders; and
• The United Nations, the world’s only true global political forum, as an authoritative convener and
facilitator
The Ten PrinciplesThe Global Compact’s principles enjoy universal consensus being derived from:
• The Universal Declaration of Human Rights
• The International Labour Organization’s Declaration on Fundamental Principles and Rights at
Work
• The Rio Declaration on Environment and Development
• The United Nations Convention against Corruption
The Global Compact asks companies to embrace, support and enact, within their sphere of influence,
a set of core values in the areas of human rights, labour standards, the environment and anti-
corruption:
6 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE UNITED NATIONS GLOBAL COMPACT
HUMAN RIGHTS
Principle 1 Businesses should support and respect the protection of international human
rights within their sphere of influence; and
Principle 2 make sure they are not complicit in human rights abuses.
LABOUR
Principle 3 Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; and
Principle 6 the elimination of discrimination in respect of employment and occupation.
ENVIRONMENT
Principle 7 Businesses should support a precautionary approach to environmental
challenges;
Principle 8 undertake initiatives to promote greater environmental responsibility; and
Principle 9 encourage the development and diffusion of environmentally friendly
technologies.
ANTI-CORRUPTION
Principle 10 Businesses should work against corruption in all its forms, including extortion
and bribery.
Diagram - Sphere of Influence
PublicPolicy &
Advocacy
Communityinteraction
SupplyChain
Core BusinessActivities
7Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE INDONESIA GLOBAL COMPACT NETWORK
The Indonesia Global Compact Network
7Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE INDONESIA GLOBAL COMPACT NETWORK
The Indonesia Global Compact Network (IGCN) is a vibrant not-for-profit organization advocating
the 10 principles of the Global Compact among Indonesia’s business communities, government,
civil society organizations and the academics. IGCN actively participates in numerous domestic and
international endeavors, especially within the Asia region.
Launched in Jakarta on 8 April 2006 during the UNESCAP conference, to date, IGCN has 112
Signatories comprised of major companies in the country including multi-national corporations, SME,
universities and Civil Society Organizations.
Diagram – Signatories by type
The network performs increasingly important roles in rooting the Global Compact into the Indonesian
corporate culture. IGCN actively recruits membership within the nation by doing proactive
recruitments through co-organized briefings, seminars, conference and one-on-one linkages.
Recruitment to IGCN is pursued by conducting “pledge ceremony” collectively through member
gets member and visitation to key cities or organizations where potential members are based. IGCN
strongly advocates the Global Compact principles by inclusion of topics into the agenda of likeminded
venues such as the Corporate Social Responsibility (CSR) Conference, Business Ethics and Marketing
Seminars, United Nations events and by inviting movers and shakers in industry, government, and
social sectors to IGCN activities.
IGCN promotes business networking, collaborative project opportunities, as well as sharing of
lessons learned and best practices in corporate social responsibility among its members and
potential indicates.
Total 112 (15/11/2013)
Academic Institutions21.6%
NGO’s & Public Sectors27,1%
Business Sectors51,3%
8 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE INDONESIA GLOBAL COMPACT NETWORK
VisionTo be respectable agent of change in accelerating country transformation toward the achievement of
human rights, competitive labor, sustainable environment, and ethical business practices.
MissionPromote, facilitate and implement the UN Global Compact principles in Indonesia.
Why you need to participateThere are numerous benefits to participating in the Global Compact through Indonesia Global
Compact Network. These include:
• Demonstrating corporate and organization leadership as responsible corporate citizenship;
• Producing practical solutions to contemporary problems related to globalization, corporate
citizenship and sustainable development;
• Improving corporate/brand management, employee morale and productivity, and operational
efficiencies;
• Developing network locally and globally;
• Sharing good practices and learning;
• Accessing the UN’s global reach and convening power with governments, business, labour, civil
society and others stakeholders;
• Managing risks by talking a proactive stance on critical issues.
9Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE MILLENNIUM DEVELOPMENT GOALS
The Millennium Development Goals
9Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE MILLENNIUM DEVELOPMENT GOALS
The Millennium Development Goals (MDGs) were adopted at the UN Assembly meeting in New York
on 6th September 2000 attended by 189 heads of states and governments.
The 8 Millennium Development Goals (MDGs) are:
1. Eradicate extreme poverty and hunger Reduce by half the proportion of people living on less than one U.S. dollar a day. Reduce by half the proportion of people who suffer from hunger.
2. Achieve universal primary education Ensure that all boys and girls complete a full course of primary schooling.
Increased enrollment must be accompanied by efforts to ensure that all children remain in school and receive a high-quality education.
3. Promote gender equality and empower women Eliminate gender disparity in primary and secondary education preferably by 2005,
and at all levels by 2015.
4. Reduce child mortality Reduce the mortality rate among children under five by two thirds.
5. Improve maternal health Reduce by three quarters the maternal mortality ratio.
6. Combat HIV/AIDS, malaria, and other diseases Halt and begin to reverse the spread of HIV/AIDS. Halt and begin to reverse the incidence of malaria and other major diseases.
7. Ensure environmental sustainability Integrate the principles of sustainable development into country policies and
programs; reverse loss of environmental resources. Reduce by half the proportion of people without sustainable access to safe
drinking water. Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020.
8. Develop a global partnership for development Develop further an open trading and financial system that is rule-based,
predictable and non-discriminatory. It includes a commitment to good governance, development and poverty reduction—nationally and internationally.
10 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE MILLENNIUM DEVELOPMENT GOALS
While the MDGs are adopted by all countries, the Goals are not the sole responsibility of the
government. It can only be achieved through the collaboration and partnership of government
together with business and civil society. Eliminating poverty means creating and providing
job opportunity for the poor. The government provides an effective education system for skill
development and a conducive business environment. The private sector recruits and empowers the
people to support the growth and the same time eradicates the poverty. So, the key is to promote
effective government-business-civil society partnerships to address the challenges of poverty,
hunger, and disease
The New York Declaration by Business
In the UN Global Compact Leader Summit 2010 held in UN headquarter New York on 21-22 June
2010, the business community reaffirmed the company’s commitment to implementing the Global
Compact principles and increase support for the achievement of global objectives including Climate
Change, MDGs etc.
The promise was stated in paragraph 4 of “The New York Declaration by Business”
“We also will strengthen support for critical development goals, particularly the
MDGs, through our core business, social investment and advocacy. We will strive
to do so both individually and in partnerships with other stakeholders, notably
civil society and Governments. In this realm, we welcome the Principles for Social
Investment and their guidance on increasing scale and impact of philanthropic
contributions”
Many companies and organizations have already been doing the MDG related activities within their
specific environment and capacity, individually or in partnership with International organizations.
Some addressing specific goals according to their mission, i.e children education, health, diseases
or environmental issues. They respond to the issue by conducting philantrophy or charity activities,
developing Corporate Social Responsibility programs or initiating business-oriented partnership by
empowering the poor through inclusive business strategy.
Global Compact can play a major role in achieving the Millennium Development Goals (MDGs)
We can work together, to build on what is already started – by having all members of the Global
Compact join the effort and intensifying work that is underway.
It is encouraging to learn the statement of UN Secretary-General’s closing remarks at High
Level Plenary Meeting of the General Assembly on the Millennium Development Goals in
New York on 22 September 2010: “The MDGs were never meant to be a one-way street --
something that rich countries do for poor ones. Quite the contrary: our long-standing work for
development in general has always been based on global solidarity -- on a shared interest --
on a powerful sense of community and linked fates in an interconnected world.”
11Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE NEW YORK DECLARATION BY BUSINESS
Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013THE NEW YORK DECLARATION BY BUSINESS
The New YorkDeclaration By Business
11
13Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013GROWING INCLUSIVE MARKETS - CREATING VALUE FOR ALL
Growing Inclusive Markets -Creating Value For All
13Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013GROWING INCLUSIVE MARKETS - CREATING VALUE FOR ALL
The Growing Inclusive Market Initiative was conceived by UNDP in 2006 in response to a need for
better understanding of how private sector can contribute to human development and Millennium
Development Goals (MDGs). The initiative’s broad aims are:
• Raising awareness by demonstrating how doing business with the poor can be good for poor people
and good for business.
• Clarifying the ways that business, governments and civil society organizations can create value for
all.
• Inspiring the private sector to action
Turning the ideas into action, research and dialogue with private sector, government and civil society
were conducted. The report: “Creating Value for All: Strategies for Doing Business with the Poor”
was published in July 2008 and was launched in Indonesia jointly by UNDP Indonesia and Indonesia
Global Compact Network (IGCN) in August 2008. The report comprises of 50 business-level case
studies selected from various countries and industrial sector that involve the poor in various strategic
methodology.
Inspired by the ideas, Indonesia Global Compact Network undertakes the initiative to conduct similar
study for Indonesia cases. While the world report can be used as reference, the Indonesia cases may
reflect a more real situation.
What are “Inclusive Business Models”?
“Inclusive business models” are ways of doing business that build bridges between business and the
poor for mutual benefit. They include the poor on the demand side as clients and customers and on
the supply side as employees, producers and business partners at various stages in the value chain.
Businesses are engines of growth, and have the potential to help improving the lives of people
through their investments and activities. Inclusive Business is beyond philanthropy and traditional
corporate social responsibility. They create and grow inclusive markets.
14 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013GROWING INCLUSIVE MARKETS - CREATING VALUE FOR ALL
Value for business• Generating profits
• Developing new markets
• Creating innovation
• Expanding the labour pool
• Strengthening supply chains
In summary, it ensures business sustainability
Value for the poor• Meeting basic needs not by charity donation
• Enabling them to be more productive
• Increasing their incomes
• Empowering communities
This is not only improving their quality of life, but also reducing the potential of having social conflict
and unrest
Hence, inclusive business is a pro-poor business approach, not only exploring new opportunities by
growing inclusive market, but also making ending poverty part of their daily business. It shows how
including the poor in their strategies is not just good for businesses; it is good for the world’s poor too.
15Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013GROWING INCLUSIVE MARKETS - CREATING VALUE FOR ALL
Poverty
Poverty can be defined as lacking of opportunity to lead a life one values
• Lack of access to financial facility
• Lack of access to market
• Lack of access to skill
• Lack of access to products
• Lack of access to essential goods and services:
• No clean water
• No adequate sanitation
• No electricity
• No internet
1000
10,000
20,000
30,000
20
Share of world population (%)
An
nu
al p
er c
apit
a in
com
e in
$U
S (m
easu
red
in 2
00
2 P
PP
)
30 40
In his famous book “The Fortune at the Bottom of the Pyramid: Eradicating Poverty through
Profits” (2004) CK Prahalad, a Professor of the Corporate Strategy and International Business,
introduced the need to have a new paradigm, by viewing “the bottom of the pyramid” or “the poor”
as a potential resource in enhancing business profitability. They are not incompetent people to
whom we give charity and donation. They are the “underserved consumers and markets” which in
fact need to be empowered. There should be new creative approach and strategy to transform the
poor to be an “active market”. As a result, business is developing and at the same time poverty is
reduced.
16 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013GROWING INCLUSIVE MARKETS - CREATING VALUE FOR ALL
How to Support the Development of Inclusive Business Models
The report suggests that business can build foundation to create new market and help the
achievement of MDGs through the implementation of Inclusive Business. But no different from
MDGs, it requires broad support and collaboration amongst business, government, civil society and
the community to make it work effectively. Each has their role to perform.
Business• Create capacity and space for innovation (technology, process, financing, skills, etc)
• Develop specialized investment tools
• Deepen community engagement
• Build capacity for collaboration
• Engage in policy dialogue with government
Government• Review the policy and regulation to remove constraints in the market environment
• Provide support and finance inclusive business models
• Provide infrastructure, basic utilities and human capital development (health, education, skills)
• Strengthen institutional capacity for collaboration
• Establish dialogue platforms to engage business and community
Community Service Organization and Others• Communities can organize to make it easier for businesses to engage
• NGOs can facilitate private sector engagement with communities, governments and other
organizations
• Donors can raise awareness and provide funding
17Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013
Case Study Summary
17Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
18 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013
BNIIndah Kiat Pulp And PaperNestleTrakindoUmang IslandUnileverVilla Hutan JatiWayan Bullfrog
19Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
GIM Volume 2 Case Study Summary
No. Company Industries Case (Title)MDGs
1 2 3 4 5 6 7 8
1. BankingGreening The Serambi Mekah In Tsunami Aftermath
2.Pulp and Paper Product
Women Empowerment With Community Strapping In Indah Kiat Pulp & Paper Mill
3.Nutrition, Healt and Wellness Product
Partnership for Sustainable Business: The Case of Nestlé and Dairy Farmers in East Java, Indonesia
4.
Supplier and Distributor of Caterpillar Equipment
PT Trakindo Utama’s Concerns About Promoting Education In Indonesia
5. Resort & SpaPulau Umang: Empowering The Locals And Preserving The Environment
6.Home and Personal Care and Foods
From Product Stewardship to Recycling Partnership: PT Unilever Indonesia, Tbk and the Role of Women in Managing Waste Bank and Trashion
7.
Farmer Empowerment, Nature Conservation & Social Entrepreneurship
Heal The Earth with Villa Hutan Jati
8. Bullfrop FarmingSustainable Business Innovation to Win the Competition
Darwin
Ternate
Jayapura
Ambon
Jakarta
Bandar Seri Begawan
Kuala Lumpur
Singapore
M a l u k u
T i m o rL e s t e
B a l i
R i a u
Halmahera
N e w G u i n e a
Sulawesi
Buru
Flores
Sumba
Sumbawa
Madura
B o r n e o
Jawa
Christmas Island(Austl.)
Suma t r a
Bangka
Belitung
I r i a n J a y a
Lombok
Malaysia Brunei
Australia
5
4
4
4
4
4
4
4
2
3
1
7
76
66
4
4
4
4
4
4
4
4
4
6
6
6
83
20 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
The magnitude power of tsunami that hit Nangro Aceh
Darussalam at the end of 2004 has destructed the
ecosystems and environment of Serambi Mekah (Veranda
of Mecca) to the point of extreme. To restore the quality
of the environment, necessary steps should be taken in
coordination with all elements of government, society,
and the business community. As a form of awareness
and response to these concerns, Bank Negara Indonesia
(BNI) took the initiative to build the ‘BNI Urban Forest’
- located at Gampong Tibang (Tibang Village), Banda
Aceh. The Urban Forest as the symbol of bank’s identity
as the Green Bank is expected to boost the creation of
Aceh Green program, announced by the local government.
Furthermore, this paper elaborates the role of BNI in
the development process, optimizing the quality and
conservation efforts of the Aceh Urban Forest. This
paper also presents the testimony of efforts to empower
local communities to become an integral part in the
management and preservation of the Urban Forest so by
the time the exit strategy is carried out, the Urban Forest
will be sustained. This paper is also expected to inspire
others, especially those who are in business community,
to re-raise the awareness on the importance of
environmental conservation campaign that we will leave
as an artifact of civilization for the future generations in
the future.
Greening The Serambi Mekah In Tsunami Aftermath
BNI Topic
Author(s)
MDG’s addressed
• Ahmad Khoirul Umam, MAGV• Handrix Chrisharyanto, MA• Dr. Iin Mayasari• Dra. Prima Naomi, MT.
21Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
In Indonesia, the role of women in the society has
always been a delicate topic, especially in rural areas in
Indonesia. Women are usually subjected to the traditional
stereotype of being a housewife; cooking and cleaning the
house and tend to their husbands’ and children’s needs.
Although they are very much affected by the financial
problems in their life as their husbands can barely support
their families’ needs, it is difficult for them to get a job
that allows them to still do all the function as a housewife
and earn money at the same time. Their low education
level is also not helping in terms of securing a job that can
contribute to their family income.
Their plight caught the attention of PT Indah Kiat Pulp
and Paper (IKP) Perawang, Riau. Since 2002, IKP has
developed its CSR programs to address this issue. One of
its community development plans was to empower these
women by creating job opportunity by turning strapping
plastics formerly used to strap pulp together into
marketable goods. It is also one of IKP’s efforts to reduce
its plastic waste.
Women Empowerment With Community Strapping In Indah Kiat Pulp & Paper Mill
Indah Kiat Pulp And Paper Topic
Author(s)
MDG’s addressed
• Lina Salim, SE., MBA., MA., Ph.D., CPM (A)
22 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
This case study highlights Nestlé Indonesia’s initiative
as an example of how a company helps fight poverty and
promotes a healthy environment by forging a mutually
beneficial business partnership between the core business
activity (producing and marketing its brand) and dairy
farmers as its suppliers, with the help of an NGO that
contributed its expertise.
The partnership has grown to a three-pronged synergy
between Nestlé Indonesia, the Humanist Institute
for Development Cooperation (HIVOS)--a Dutch
non-governmental organization (NGO)--and farmers’
cooperatives. Each party contributes its special resources.
The NGO provides technical know-how and expertise, the
farmers have the cows and Nestlé Indonesia provides
zero interest loan and guaranteed market for the fresh
milk. The case examines the challenges and opportunities
of such partnership in the context of income generation
for the poor, which also addresses environmental issues
and the improvement of family health in the process.
Partnership for Sustainable Business: The Case of Nestlé and Dairy Farmers in East Java, Indonesia
Nestlé Topic
Author(s)
MDG’s addressed
• Anita Maharani, MM• Dian Rosdiana • Iin Mayasari • Iyus Wiadi • Prima Naomi • Retno Hendrowati, MT • Tia Rahmania
23Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
PT Trakindo Utama (Trakindo) has a great concern about
education in particular about the development of morality
and character of the nation’s next generation. Through its
support in education both inside and outside the company,
Trakindo has been contributing to making a success of
Millenium Development Goals (MDGs) programs. The
efforts of education development began in 1996. The other
MDGs programs have also been conducted by Trakindo
which include poverty and famine elimination, promotion
of gender equality and women empowerment, decrease
of child mortality rate and improvement of pregnant
women’s health, reduction of HIV/AIDS risks, assurance
of environmental sustainability, and improvement of
global partnership for development. Trakindo’s concern
about education, particularly education with good
character, has been materialized in development and
establishment of Elementary Schools, Vocational High
Schools, and Polytechnic and Community College. The
success of Trakindo’s MDGs programs has been supported
by the entire stakeholders to a great extent.
PT Trakindo Utama’s Concerns About Promoting Education In Indonesia
Trakindo Topic
Author(s)
MDG’s addressed
• Anita Maharani, MM• Dr. Iin Mayasari • Dr. Iyus Wiadi • Retno Hendrowati, MT • Dr. Rini Sudarmanti
24 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
This paper focuses on the issues of corporations
collaborating with society to address Millennium
Development Goals, namely: poverty alleviation
and environment sustainability. The results of the
concerted efforts are improved access to employment
to local people through training and empowerment and
involvement of various stakeholders to preserve natural
resources surrounding Umang island.
The methods used to compile this paper started with
interviews, both preliminary and on site interviews,
backed with findings from previous researches and
literature relevant to poverty alleviation and environment
sustainability efforts in the vicinity of Umang island. The
researchers also went snorkeling at various parts of the
island to document the natural wealth surrounding the
island that can be further explored and expanded to bring
economic benefits to the local people and businesses.
This paper proposes actions to be considered based on the
findings and conditions related to the island for further
research and exploration. The sustainable economic
development of the villages surrounding Umang island will
be directly related to their ability to sustainably preserve
the environment.
Pulau Umang: Empowering The Locals And Preserving The Environment
Umang Island Topic
Author(s)
MDG’s addressed
• Sendy Widjaja• Andrew S. Mewburn
25Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
Unilever Indonesia Topic
Author(s)
MDG’s addressed
Household waste is an increasingly serious problem
in Indonesia, including plastic waste from packaging
of consumer goods. PT. Unilever Indonesia Tbk has
demonstrated its commitment and concern for the
environment by building partnerships with community
groups to collect plastic packaging waste from consumer
products through waste banks and the reuse of the
plastic waste for household goods under the trade
name “Trashion”. This partnership helps to enhance
the welfare of the community groups involved, and can
change attitudes and behaviors toward waste (Especially
inorganic waste).
From Product Stewardship to Recycling Partnership: PT Unilever Indonesia, Tbk and the Role of Women in Managing Waste Bank and Trashion
• Maria R. Nindita Radyati, Ph.D• Veritia Sukarta, SE, MM(CSR)
26 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
F.X. Boedi Krisnawan Suhargo’s concern about the
destruction of land in Indonesia and the poverty
experienced by the majority of farmers has spawned Villa
Hutan Jati (Teak Forest Villa). It is a natural laboratory
with its vision and mission is to: ‘Heal The Earth together’,
anticipating the effect of global warming, anticipating food
and energy crisis, and combating poverty.
In materializing its vision and mission, Villa Hutan
Jati organizes various trainings to increase farmer’s
knowledge in agriculture, organization and bussiness
area. Trainings are also conducted to build motivation
and change the mindset of the farmers so that they have
pride in their profession as farmers. Besides conducting
trainings, Villa Hutan Jati also facilitates some efforts for
environmental preservation, strengthens local economy
and social cohesion, and encourages the emergence
of new time-tested entrepreneurs. Some of the area
selected by Villa Hutan Jati to implement its programs
are Southwest Sumba Regency and Noelbaki village. Both
areas are located in the province of East Nusa Tenggara.
With its program, Villa Hutan Jati has given new hope
to those who are not afraid of hard work to achieve a
better life, not only in economyc term, but also in other
dimensions such as nature, society and wellbeing.
Therefore, the impact of this program is not only give
benefits to farmers as individuals, but also it gives
benefits to the whole community where they live.
Heal The Earth with Villa Hutan Jati
Villa Hutan Jati Topic
Author(s)
MDG’s addressed
• Maria R. Nindita Radyati, Ph.D• Santi Ermawati, SE., MM• Astan Jaya Tamburaka, SE.,
MM
27Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
Innovation is the essence of business survival. Without
innovation, there is likely no business that can survive
to compete for the future. Innovation is not only for
large business or in high-tech sectors, but also for small
business such as bullfrog farming in agri-business sector.
Wayan is a good example of a very tough and persevering
frog farmer who always treats obstacle as a challenge
for innovation. This is what makes him different than
other farmers. As a result, Wayan has existed as a
frog farmer for more than half of his age and become
the most successful frog farmer in Bali, Indonesia.
Innovations have been done through battery pond, frog
foods, treating frog diseases, methods for frog’s optimal
growth, and know-how to build marketing network to sell
the product. He found ideas for innovation out of passion
and perseverance in frog business. He got many ideas
for developing good bullfrog farm. Hence, this business
innovation is a key to Wayan’s success in frog farming.
Sustainable Business Innovation to Win the Competition
Wayan Bullfrog
Wayan Bullfrog
Topic
Author(s)
MDG’s addressed
• Liliana Inggrit Wijaya• Dudi Anandya• Fitri Novika Wijaya
28 Growing Inclusive Markets: Indonesia Cases | Volume 2 - 2013CASE STUDY SUMMARY
No. Company Industries Case (Tittle)MDGs
1 2 3 4 5 6 7 8
1. BankingBNI Village: An Integrated Dairy Cattle Husbandry & Community Development
2. Dairy Products
CIMORY Dairy Products: Empowering Poor Dairy Farmers to Do a Sustainable Business
3. Banking
Improving Traditional Market Community Welfare Through Waste Management Program
4. Transportation
Rajawali’s Express Taxi: Working with Taxi Drivers as Business Partners in Indonesia
5. Mining
Nemangkawi Mining Institute Prepares Papuans to Become Members of a Modern Industrial Workforce
6. NGOYES! Program
7. Telecommunication
Transforming Traditional Housewives into Domestic Entrepreneurs to Elevate Household Welfare by Retailing SEV (System Electronic Voucher) Indosat
8.Cosmetics & Herb-al Products
Women Empowerment Through Spa Therapist Scholarship Program
9. Paper ProductsTjiwi Kimia Cares on HIV/AIDS Program In Indonesia
10. Consumer Goods
Growing Together in Partnership: The Case of Unilever and The Black Soybean Farmers in Indonesia
Darwin
Ternate
Jayapura
Ambon
Jakarta
Bandar Seri Begawan
Kuala Lumpur
Singapore
M a l u k u
T i m o rL e s t e
B a l i
R i a u
Halmahera
N e w G u i n e a
Sulawesi
Buru
Flores
Sumba
Sumbawa
Madura
B o r n e o
Jawa
Christmas Island(Austl.)
Suma t r a
Bangka
Belitung
I r i a n J a y a
Lombok
Malaysia Brunei
Australia
13
5
6
7
10
8
8
88 9
4
7
7
6
2
GIM Volume 1 Case Study Summary